The retail Rx cost rate, despite the 15% increase
expected for 2005, has actually decelerated 3%, down from
18% in 2004. This is the lowest cost increase seen since
1998.

Also in the survey, Segal stated that increases in the
cost of hospital services are another leading cause of
medical plan cost inflation. On a brighter note, however,
Medicare HMO/Advantage plan cost rates are projected to
drop below 10% for the first time in several years.

The Segal Health Plan Cost Trend Survey was conducted
with information collected from a survey of major insurance
carriers, managed care organizations, pharmacy benefit
managers and third party administrators. The survey is at
2005 Segal Health Plan Cost Trend
Survey
.